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General Dynamics Awarded $189 Million for Light Armored Vehicles for U.S. Marine Corps

STERLING HEIGHTS, Mich. – The U.S. Marine Corps has awarded General Dynamics Land Systems, a business unit of General Dynamics (NYSE: GD), a contract for $189 million for 151 new eight-wheeled Light Armored Vehicles (LAV-A2) in various configurations. This award, which includes a $50 million option for 394 LAV-A2 electric turret drives, modifies a contract awarded in February 2006 and brings the total value of the contract to $317 million.

The LAV-A2 variants are improved versions of the Marines’ Light Armored Vehicle series, which entered service in the 1980s and continues operational employment today. General Dynamics will deliver armored personnel, anti-tank, command and control, logistics and mortar variants beginning in July 2007. Work will be performed in Sterling Heights, Mich.; Woodbridge, Va.; and London, Ontario, Canada, by existing General Dynamics Land Systems personnel. Work is expected to be completed by December 2008.

The Light Armored Vehicle A2 provides the Marine Corps’ Light Armored Reconnaissance Battalion a mobile, agile and survivable system for conducting offensive and defensive operations in support of the Marine Air-Ground Task Force. The eight-wheeled amphibious armored vehicle is equipped with an improved suspension, fitted for enhanced armor protection, and features an automatic fire-suppression system for crew protection. Power is provided by a Detroit Diesel 6V53T diesel engine, developing 275 horsepower, coupled to an Allison MT653, six-speed (five forward, one reverse) automatic transmission. The four rear wheels drive the vehicle on a full-time basis, while eight-wheel-drive is selectable.

General Dynamics, headquartered in Falls Church, Va., employs approximately 81,900 people worldwide and had 2005 revenue of $21.2 billion. The company is a market leader in mission-critical information systems and technologies; land and expeditionary combat systems, armaments and munitions; shipbuilding and marine systems; and business aviation. More information about the company is available online at www.generaldynamics.com.

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